CIT Failure Would Be Mistake

Ignoring CIT and the small/medium size business' it serves would be a tactical and financial mistake by the Obama Administration. It would be a breaking of faith with small and medium sized business. These are the job creators in the past, now and in the future. The app. 1,000,000 accounts that CIT serves would not easily, if at all find a replacement. Big bank business models are not geared for CIT-type accounts. Consequently bankrupties would follow for some of those accounts and include others in their greater spheres of influence.

The chump change of $4 billion that CIT needs is relatively nothing compared to the hundreds of billions that already have gone out the window to the constructive criminals at AIG,B of A, Citigroup, GM and Chrysler. Small business built this country. Small business owners ran for office . Now many of our politicians are lawyers or people who never had a real job. This results in leadership that doesn't get it or worse get it but are paid to ignore it.

Lincoln, Obama, UAW & Civil War

Abraham Lincoln was quoted, " These capitalists generally act to fleece the people". What would Abe say about the United Auto Workers?

Obama ,who likes to invoke Lincoln, said something about the UAW . He fleeced the capitalists by giving the UAW more of Chrysler and General Motors than the bond holders after the federal bailout. That's an ironic metaphor for the North usurping states rights in the South by way of a Civil War.  A reversal of South Carolina firing on Fort Sumter.

Prepare for the future. The government is getting more aggressive.

Chrysler Should Have Been Allowed To Fail

The shameless auto executives are back begging for more money. They remind of the young man pleading his case before his sceptical parents. "Please just give me one more chance. I will be home on time and I promise to fill up the gas tank this time."

The parents retort," But son you are a mature man now. Some of your classmates have started their own families and they own a home and own their own cars. When will you grow up? We have other obligations."

Former Chrysler CEO Lee Iacocca made a sucessful plea for a government bailout some 30 years ago. And now Chrysler is back but this time with GM and Ford at the same table. Maybe if Chrysler was allowed to fail years ago, GM and Ford would have worked harder and the UAW would have learned a lesson that would have avoided todays mess?

GM & UAW Leadership vs. UAW Rank & File

General Motors has offered the United Auto Workers leadership $ 50 billion to fund the outstanding liabilities of health care costs of the UAW rank and file.The effective triangulation is in the form of a VEBA-voluntary employee beneficiary association. It puts UAW leadership in the sweet spot of managing a $50 billion fund with all the perks and deals that creatively can be made at the expense of the rank and file membership. And it removes GM from any future health care liability. It's a cinch the UAW management can say NO to it's membership a lot easier than GM can. GM nearly went broke saying YES to the UAW.